Does Your Name Appear on CHEX SYSTEMS?

Have you ever been denied opening a bank account because your name appears on CHEX SYSTEMS? There are several reasons why this would happen but none of them are good. If the bank had to close your account for whatever reason, then they report your information to this agency which works similar to a credit reporting agency. You DO NOT want your name to appear on CHEX Systems, this only happens when you have been a bad boy or bad girl and you didn't play nice with the other bank.

Let's suppose you had a checking account with Chase and you had a history of overdrawing your account causing it to constantly run at a negative balance. Chase decides that they no longer want you as a customer because your account is overdrawn and you have not made a deposit into the account and it has been several weeks that your account is at negative, you have neglected this account and you probably feel like it's not your fault and that Chase should had never paid the debit card purchases you made when you didn't have enough in your account.

So now your account is closed and your information is reported to Chex Systems which is accessible by all banks, your name, date of birth, social security number and address are sent with a reason of why your name has been reported and the amounts owed. This information will stay on CHEX Systems for 5-7 years and unless it's a mistake on the bank's behalf than you won't be able to remove your name from it.

Only the bank who reported you can delete you and if the bank that reported you is no longer in existence than it would be the bank who bought out your bank.

At this point you must be wondering if a bank will open a checking account for you now that you've been labeled a high risk prospect. Most banks will say NO, however there are some banks that will consider the severity of the report. Some banks will report you to CHEX Systems even if the amount you owed and paid was minimal. However, keep in mind that you may be offered a checking account that has limitations. E.g., you might be offered a checking account with a monthly maintenance fee or an account with limited transactions. They vary from bank to bank and since you are considered high risk, don't expect to get the best deal. There are banks out there that offer accounts without running your information through CHEX SYTEMS, however, you will have to pay non-traditional fees and be limited with the types of transactions you can do and access to your funds may be costly.

In the event that you have been reported to CHEX Systems, make sure you pay the amounts owed. Forget about not paying the money back because you "feel" it wasn't your fault. Ultimately you are responsible for your account and it's really not worth having your name on CHEX Systems for a few dollars.

Beware, every time a bank pulls up your information on CHEX Systems, an inquiry is recorded, now it won't hurt to have inquiries but a bank may wonder why you've had inquiries so frequently in a short period of time, they may think you are up to something...so do your research on a bank's products before you apply for a checking account. Be upfront with the banker and explain your situation.

Please post your questions, stay tuned for simple but effective tips on how to manage your checking account.